Camco Announces Third Quarter Results.HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. -- Camco announced, primarily as a result of closure costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Hamilton manufacturing and distribution facility, a net loss of $1.0 million or $0.05 per share for the third quarter ending September September: see month. 18, 2004, compared to net income of $0.6 million or $0.03 per share for the same period last year. Income from operations, before closure costs, rose to $4.8 million in the third quarter of 2004 versus $1.9 million for the same period in 2003. Total sales for the third quarter amounted to $168 million up 13% from 2003. Excluding plant closure costs, higher income from operations for the third quarter of 2004 was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher domestic and export sales and lower base costs. Closure costs of $6.7 million ($4.5 million net of taxes) were recorded in the third quarter of 2004. As previously announced, closure costs for the Hamilton plant will continue to be updated on a quarterly basis during 2004. Without closure costs, quarterly profit would have been $3.1 million compared to $0.6 million for the same period in 2003. For the first three quarters of 2004, the Company recorded a net loss of $6.6 million on sales of $458 million. Sales in 2003 were $431 million resulting in net income of $0.9 million. Income from operations, before closure costs rose to $9.6 million, compared to $3.6 million in 2003. The principal drivers of improved year-over-year operational performance were: strong domestic and export sales, base cost productivity improvements resulting in lower operating costs operating costs npl → gastos mpl operacionales , and increased production at the Company's manufacturing facility in Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. . James Fleck James (Jim) Douglas Fleck, O.C. (born c. 1931) is a Canadian businessman, academic, and philanthropist. Education Fleck has a Bachelor of Arts degree from the University of Western Ontario and a Doctor of Business Administration from Harvard University. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. commented: "Although net income for the balance of the year will continue to be impacted by quarterly charges for Hamilton closure costs, as explained in the third quarter MD&A, on an operations basis, the Company continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. 2003. We are now down to the final weeks of production in Hamilton and everyone associated with Hamilton has contributed to one of the most stable production years we've we've Contraction of we have. we've have ever experienced. Quality remains good, as does health and safety. Our Montreal Plant has done a good job of bringing new dryer capacity on line, and will be running at record high production levels this fall. We are continuing to evaluate offers for the sale of the Hamilton site as well as redundant equipment." Camco is the largest Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. manufacturer, marketer and service provider of home appliances, with manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Hamilton, Ontario and Montreal, Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. . The Company's product line includes such popular names as GE, Hotpoint Hotpoint is a major brand of electric appliances or "white goods" today owned by Indesit and General Electric. The Hotpoint Electric Heating Company was formed in 1911 in the United Kingdom. , Moffat Moffat is a former burgh and spa town in Dumfries and Galloway, Scotland, lying on the River Annan, with a population of around 2,500. The most notable building in the town is the Moffat House Hotel, designed by John Adam. , Monogram monogram [Gr.,=single letter], symbol of a name or names, consisting typically of a letter or several letters worked together. A famous monogram is that of Christ, consisting of X (chi) and P (rho), the first two letters of Christ in Greek. and Samsung. Camco also produces and services private brands for major Canadian department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. . For information regarding Camco's products and services, please visit the Company website at www.geappliances.ca. Report to the Shareholders For the Period Ended September 18, 2004 Interim Management Discussion and Analysis (MD&A) Primarily as a result of the closure costs relating to the Hamilton manufacturing and distribution facility, Camco recorded a net loss of $1.0 million or $0.05 per share on sales of $167.7 million for the third quarter ended September 18, 2004. This compares with net income of $0.6 million or $0.03 per share on sales of $148.4 million for the same period last year. Plant closure costs of $6.7 million ($4.5 million net of taxes), were recorded in the third quarter of 2004. Income from operations, before closure costs, rose to $4.8 million in the third quarter of 2004 compared to $1.9 million for the same period in 2003. Excluding plant closure costs, increased domestic and export sales and reduced base costs were the main contributing factors to Camco's higher operating results. Results from Operations Sales Primarily as a result of higher domestic and export sales, revenues for the third quarter of 2004 of $167.7 million were up 13% from 2003. Total domestic and export sales for the first three quarters of 2004 were $290 million and $168 million, respectively compared to $272 million (domestic) and $159 million (export) in 2003. In the third quarter, the Canadian core appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. industry grew by 3.1% bringing total industry growth for the year up to 6.0%. For the first nine months of 2004, total industry retail sales were up 7.8%, however total sales in the builder segment were down 2.5%. This information is from the preliminary results provided by the Canadian Appliance Manufacturer's Association and is measured in units sold. Net Income The Company recorded a net loss in the third quarter of $1.0 million or $0.05 per share compared to net income of $0.6 million or $0.03 per share for the same period last year. Excluding closure costs of $6.7 million ($4.5 million net of taxes), higher income from operations of $4.8 million for the third quarter of 2004 compared to income from operations of $1.9 million for the same period in 2003 is attributable to higher domestic and export sales and lower operating costs. Combined with the net loss of $5.6 million reported in the first half, the net loss for the first three quarters of 2004 totalled $6.6 million versus net income of $0.9 million reported in 2003. Plant Closure Costs In the third quarter of 2004, the Company recorded plant closure costs of $6.7 million ($4.5 million net of taxes) primarily comprising employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when . As disclosed in last year's fourth quarter MD&A, closure costs for the Hamilton plant will be updated on a quarterly basis during 2004. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , only a portion of the severance and pension expense could be recorded in 2003. Total plant closure costs are currently estimated to be $99.8 million ($66.8 million net of taxes) excluding any gains as a result of the sale of the Hamilton facilities, with $77.4 million ($51.8 million net of taxes) recorded in 2003, $19.0 million ($12.7 million net of taxes) recorded in the first three quarters of 2004, and the remainder of $3.4 million ($2.3 million net of taxes) to be recorded in the balance of 2004. The majority of the remaining closure costs still to be recorded during 2004 are related to employee severance. The estimate of current year closure costs of $22.6 million, a $4.2 million increase from the 2003 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. estimate of $18.4 million, is mainly due to the improvements in pension and benefits made in the closure contract agreement dated January January: see month. 14, 2004. A pension settlement cost will be funded over the next five years and will be recorded upon final settlement of the plan obligations. As at December December: see month. 31, 2003 this settlement cost was actuarially estimated to be $11.5 million. The actual amount of the settlement and the future funding requirements will be dependent upon future interest rates and plan asset returns. Payments related to severance expenses will be made in January 2005, following the closure of the Hamilton facility in December 2004, while pension-funding payments will be incurred monthly until 2008/2009. The portion of the total closure costs, currently estimated to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $99.8 million ($66.8 million net of taxes), that will require a cash outlay is approximately $27.2 million, which relates primarily to severance payments. The majority of these cash payments will be made in January 2005, after the November November: see month. 2004 closure. Interest and Other Expenses Interest and other expenses of $0.1 million were $0.6 million lower than last year. This was principally due to the combination of reduced average debt and lower interest rates, as well as a timing difference of the income generated from the redemption of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. held by Camco in Comerco Services Inc., Camco's joint venture as detailed in Camco's annual MD&A for 2003. Cash Flow and Balance Sheet Cash from Operations: During the quarter, cash generated from operations amounted to $2.1 million versus $3.5 million cash generated for the same period last year. For the first three quarters of 2004, cash generated from operations equalled $17.8 million versus $5.6 million used in 2003. The variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality from 2003 is attributable to improved working capital levels, including a $43 million increase in accounts payable from the beginning of the year. Capital Investing Activities: The Company's plant and equipment investing activities for the quarter were $2.9 million versus $1.2 million for the same period last year. The investing activities are primarily related to quality and productivity improvements in the Company's Montreal facility. Bank Borrowings and Dividends: Bank borrowings decreased by $15.8 million in the third quarter of 2004 to $11.3 million versus a decrease of $0.8 million to $42.1 million for the same period last year. The Company did not declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. a dividend in the third quarter of 2004. The variance from 2003 is attributable to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of the $15 million operating line that became due on the Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant of month-end, which was subsequently re-borrowed on the following Monday Monday: see week. , in order to reduce interest charges. Liquidity and Capital Resources In the third quarter, the Company met all of its requirements for banking and cash. To assist with closure related expenses, the Company has arranged an additional credit facility of up to $10.0 million with its banker BANKER, com. law. A banker is one engaged in the business of receiving other persons money in deposit, to be returned on demand discounting other persons' notes, and issuing his own for circulation. One who performs the business usually transacted by a bank. available from April 1, 2004 - September 30, 2004 and up to $20 million from January 1, 2005 - September 30, 2005. To date, the Company has not needed to draw upon these funds. Factors Affecting Current and Future Operations: Hamilton Manufacturing: The Company is continuing refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. and range production at the Hamilton facility until November 2004. The financial results for the Hamilton operations up to November 2004 will be treated as "results from normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of ". The Company has not recorded any provisions for expected gains The expected gain (or expected return) is the weighted-average most likely outcome in gambling, probability theory, economics or finance. Discrete scenarios In gambling and probability theory, there is usually a discrete set of possible outcomes. and losses that relate to normal production operations in 2004. On January 14, 2004, the Union representing hourly and salary employees at the manufacturing facility in Hamilton accepted a closure contract agreement. The agreement included improvements to both pension and benefits. The Company estimates the additional cost of the contract to be approximately $3.0 - $3.5 million. Some of the additional costs will be recorded as plant closure costs and some will be recorded through pension and benefit expense in 2004. Montreal Manufacturing: Concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with the extension of the dryer supply contract, the Company announced two new investment programs in the Montreal facility. Under the first program, the Company will be investing $14.9 million over a period of 18 months during 2003 and 2004 to expand plant capacity to meet increased demand. To date, the capacity project is well underway, close to reaching target capacity with minor installation remaining to achieve full savings. Under the second program, the Company will be investing $15.2 million in the design and production of a new, leading edge dryer platform. The financing arrangement for both of the investment programs totalling $30.1 million has two components: (1)GE Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of has entered into two equipment operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. with the Company valued at up to $8.2 million (US) in connection with capacity project and $8.6 million (US) for the new dryer development and production. (2)The remainder of the financing ($7.7 million CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. ) will be funded through internal sources and through Investissement Quebec. The Investissement Quebec grant is conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. on Camco maintaining certain employment levels through to 2010. In March 2004, the unions representing hourly and salary employees at the Montreal facility ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. a three-year contract. The new contract included improvements to wages, benefits and pensions. Increased Steel and Commodity Prices Recent increases in commodity prices, especially steel have had an impact on manufacturing costs in 2004 and the Company has announced price increases to the domestic market that will take effect on January 1, 2005. Although the Company has fixed price supply arrangements with it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have main steel supplier in place until the end of 2004, it experienced cost increases from third party parts processors, plastic components and freight costs. Given the current volatility in steel prices the effect of any renegotiated steel supply arrangements on operations remains uncertain. To the extent that the Company is subject to increased steel prices, it may not, pursuant to the terms of its key dryer supply agreement, be able to pass these increased costs on to its largest major customer. Exposure to Exchange Rate Fluctuations Stronger Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents exchange rates cause US dollar sales to result in lower Canadian dollar reported revenue, however, the Company currently has very little net currency exposure because sales billed in US dollars approximately equals purchases of imported products denominated in US dollars. Some of the statements contained in this release may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , such as estimates and statements that describe the corporation's future plans, objectives or goals, including words to the effect that the corporation or management expects a stated condition to exist or occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ from those currently anticipated in such statements by reason of factors such as, but not limited to, changes in general economic and market conditions. Camco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONSOLIDATED BALANCE SHEET
Unaudited (In thousands of dollars)
September December
18, 2004 31, 2003
------------------------
Assets
Current Assets
Cash and cash equivalents $ 10,516 $ 9,301
Accounts receivable - trade 30,571 2,431
Accounts receivable - other 1,831 805
Inventories 63,867 49,442
Income tax recoverable 2,607 -
Future income taxes 9,284 9,058
Prepaid expenses and other assets 6,218 7,050
------------------------
124,894 78,087
Future income taxes 31,127 31,127
Property, Plant and Equipment 33,969 33,507
Other assets 13,289 8,661
Accrued Benefit Asset 32,481 29,837
------------------------
$ 235,760 $ 181,219
------------------------
------------------------
Liabilities and Shareholders' Equity
Current Liabilities
Operating line of credit $ - $ 10,000
Current portion of long-term debt 3,014 3,016
Accounts payable and accrued liabilities 142,251 82,238
Due to Affiliates, net 25,103 11,740
Income taxes payable - 1,079
------------------------
170,368 108,073
Employee Severance - 6,177
Accrued benefit liability 5,187 5,187
Long-Term Debt 8,251 9,760
Other liabilities 14,676 9,622
Post retirement benefits 55,997 54,536
------------------------
254,479 193,355
Shareholders' Equity (Deficit)
Common shares
Authorized - unlimited
Issued and outstanding - 20 million shares 37,442 37,442
Retained Earnings (Deficit) (56,161) (49,578)
------------------------
(18,719) (12,136)
------------------------
$ 235,760 $ 181,219
------------------------
------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In thousands of dollars)
Nine months ended Three months ended
---------------------------------------
Sep Sep Sep Sep
18, 2004 20, 2003 18, 2004 20, 2003
---------------------------------------
Net sales of products
and services $ 457,636 $ 431,766 $ 167,745 $ 148,377
---------------------------------------
Operating costs
Employee compensation,
including benefits 109,355 107,282 35,315 39,646
Material, supplies, services,
and other costs 338,646 320,847 127,600 106,832
---------------------------------------
448,001 428,129 162,915 146,478
---------------------------------------
Income from operations before
closure costs 9,635 3,637 4,830 1,899
and write down costs
Hamilton Plant closure costs 19,062 - 6,678 -
Write down of investments 421 - - -
---------------------------------------
Income (Loss) from operations (9,848) 3,637 (1,848) 1,899
Interest and other expenses (645) (1,992) (69) (670)
---------------------------------------
Income before income taxes (10,493) 1,645 (1,917) 1,229
Income taxes 3,910 (764) 966 (610)
---------------------------------------
Net Income/(Loss) $ (6,583) $ 881 $ (951) $ 619
---------------------------------------
---------------------------------------
Earnings per share,
basic and diluted $ (0.33) $ 0.04 $ (0.05) $ 0.03
---------------------------------------
---------------------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS/(Deficit)
Unaudited (In thousands of dollars)
Period Ended
---------------------------
Sep Sep
18, 2004 20, 2003
---------------------------
Retained earnings/(deficit),
beginning of year $ (49,578) $ 2,950
Net income (6,583) 881
---------------------------
Retained earnings/(deficit),
end of period $ (56,161) $ 3,831
---------------------------
---------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In thousands of dollars)
Nine Months ended Three months ended
--------------------------------------
Sep Sep Sep Sep
18, 2004 20, 2003 18, 2004 20, 2003
--------------------------------------
Cash flows from Operating
Activities
Net income (loss) $ (6,583) $ 881 $ (951) $ 618
Add (deduct) items not
affecting cash
Depreciation and amortization 4,576 12,060 1,588 4,111
Post employment benefits
expense 15,466 11,774 5,675 4,951
Future Income Taxes (226) 192 (242) 192
Net increase/(decrease) in
working capital (Note 2) 26,930 (13,460) 2,048 439
Post employment benefits
funding (16,648) (18,276) (6,226) (7,223)
Other non-current operating
activities (5,751) 1,270 225 404
--------------------------------------
17,764 (5,559) 2,117 3,492
--------------------------------------
Capital Investing Activities
Property, plant & equipment
additions (5,038) (4,116) (2,929) (1,204)
Disposal of property, plant &
equipment - 19 - -
--------------------------------------
(5,038) (4,097) (2,929) (1,204)
--------------------------------------
Financing Activities
Increase/(decrease) in short
term borrowings (10,002) 18,668 (14,245) (762)
Increase/(decrease) in long
term borrowings (1,509) 3,027 (1,509) -
--------------------------------------
(11,511) 21,695 (15,754) (762)
--------------------------------------
Increase in cash and cash
equivalents 1,215 12,039 (16,566) 1,526
Cash and cash equivalents,
beginning of period 9,301 3,724 27,082 14,237
--------------------------------------
Cash and cash equivalents, end
of period $ 10,516 $ 15,763 $ 10,516 $ 15,763
--------------------------------------
--------------------------------------
Cash and cash equivalents is
represented by:
Cash $ 4,493 $ 5,123 $ 4,493 $ 5,123
Short-term investments,
at cost which
approximates market:
Commercial Paper 6,023 10,640 6,023 10,640
--------------------------------------
$ 10,516 $ 15,763 $ 10,516 $ 15,763
--------------------------------------
--------------------------------------
Supplemental Cash Flow
Information:
Income and capital taxes paid $ 271 $ 1,026 $ 34 $ 320
--------------------------------------
--------------------------------------
Interest paid $ 1,169 $ 1,323 $ 546 $ 516
--------------------------------------
--------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
For the nine months ended Sep 18, 2004 and Sep 20, 2003
Unaudited (In thousands of dollars)
1. As a result of the Hamilton Plant Closure Costs recorded in 2003 (see note 6), the Company has a Shareholders' Deficit as at September 18, 2004. The Company expects significant long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. cost savings as a result of the closure of the Hamilton plant. In addition, the Company reached an agreement with GE Consumer & Industrial, a division of GE, to extend the dryer supply agreement for the Montreal plant through December 31, 2006 and has also entered into outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. arrangements with third parties to supply refrigerators and ranges to the Canadian market once the Hamilton plant closes. From a financing perspective, the Company has renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. its agreement with its lender whereby an additional $10 million operating facility will be made available from April 1, 2004 - September 30, 2004 and an additional $20 million operating facility will be made available from January 1, 2005 - September 30, 2005. To date, the Company has not had the need to draw upon these funds. 2. Changes in working capital includes changes in the following accounts:
Nine months ended Three months ended
-----------------------------------------
Sep Sep Sep Sep
18, 2004 20, 2003 18, 2004 20, 2003
-----------------------------------------
Accounts receivable - Trade $ (28,141) $(19,729) $ (4,075) $ (1,694)
Accounts receivable - Other (1,026) 3,299 (1,130) 96
Inventories (14,425) 2,220 (3,413) 4,593
Prepaid and other assets 832 373 (1,303) 288
Income taxes
payable/recoverable (3,686) (47) (567) (589)
Accounts payable and
accrued liabilities 60,013 (4,759) 7,813 3,982
Due to affiliates, net 13,363 5,183 4,723 (6,237)
-----------------------------------------
Net increase (decrease) in
working capital $ 26,930 $(13,460) $ 2,048 $ 439
3. Effective January 1, 2003, the Company announced the merger of its extended warranty The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. contract business with Comerco Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. Plus Inc.'s service contract operation. The new joint venture, Comerco Services Inc., is based in Laval, Quebec Laval (pronounced  ) is a city and a region in southwestern Quebec, Canada in the Greater Montreal Area. It is located on Île Jésus, across the Rivière des Prairies from Montreal. , and offers the capability of
formulating, implementing, and servicing extended warranty programs
across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. and the U.S and has been proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in the Company's financial statements. 4. On April 15, 2003, the Company reached an agreement with GE Consumer & Industrial, a division of General Electric Company, to extend a dryer supply agreement. Under the agreement, Camco will export to GE Consumer & Industrial certain models of dryers through to December 31st, 2006. More specifically, the annual minimum volume of units committed to be purchased by GE Consumer & Industrial will increase from the current level of 400,000 units to 800,000 units beginning in 2005. The current dryer contract, which was originally signed in late 1993 and was subsequently renewed in 1999, would have expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in December 2003. 5. Concurrent with the extension of the dryer supply contract, the Company announced two new investment programs in the Montreal facility. Under the first program, announced April 15, 2003, the Company will be investing $14.9 million over a period of 18 months during 2003 and 2004 to expand plant capacity. The Company will be financing the plant expansion through an $8.2 million (US) equipment operating lease with GE Canada. Under the second program, announced May 17, 2004, the Company will be investing $15.2 million in the design and production of a new, leading edge dryer platform. The Company will be financing this program through an $8.6 million (US) equipment operating lease with GE Canada. The remainder of the financing for both of these projects ($7.7 million CDN) will be funded through internal sources and through Investissement Quebec. 6. On October October: see month. 17, 2003, Camco announced that manufacturing operations at the Company's Hamilton plant was no longer a viable proposition and that production and warehouse operations at the facility will cease in December 2004. The closure of the plant results in a write down of asset values and the incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. of costs associated with reducing the size of the work force. Closure costs of $99.8 million are estimated, excluding any gains as a result of the sale of the Hamilton facilities, and will be updated quarterly as the Company goes through the plant wind-up wind-up or wind·up n. 1. a. The act of bringing something to an end. b. A concluding part; a conclusion. 2. process. In the fourth quarter of 2003, the Company recorded a plant closure provision of $77 million ($52 million net of taxes). There are three primary elements to the cost of closure: (1) employee severance ($9 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ; $6 million net of tax), (2) pension wind-up expense ($33 million pre-tax; $22 million net of tax), and (3) the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of impaired See assistive technology. plant and equipment assets ($35 million pre-tax; $23 million net of tax). Through September 18, 2004, the Company has recorded an additional plant closure provision of $19 million ($13 million net of taxes). 7. The interim financial statements should be read in conjunction with the most recent annual financial statements. The Company's accounting policies and methods of application are consistent with the annual financial statements ended December 31, 2003.
CORPORATE INFORMATION
Camco Inc. Website: http://www.geappliances.ca
175 Longwood Road South Share Transfer Agent: CIBC Mellon Trust
Hamilton, Ontario Company
L8N 3Y5 Auditors: Deloitte and Touche LLP
Major Facility Locations: Hamilton,
Montreal, and Moncton
Camco Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :COC See chip on chip. ) |
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